Vertical Relationships

This is based, usually, on traditional links between business within the supply chain such as retailers, distributors, manufacturers and raw material suppliers.

Horizontal Relationships

Horizontal relationships occur between firms that occupy a parallel position within the supply chain i.e. two ocean carriers which share ship capacity.

For the sake of mutual benefit, business can rely on each other on an operational basis. This in turn creates a business environment where the total if the parts is greater than the whole.

The ultimate aim for any type of supply chain relationship is to be successful. A good supply chain relationship can achieve;

Transactional Relationships

This is where businesses have minimum contact or communication often resulting in limited commitment from parties involved.